Restaurant HSN Code and GST Rate for Billing Setup in India 2026

HSN codes classify goods under GST, while SAC codes classify services. Since restaurants provide food service, billing is typically done using SAC codes.

Primary restaurant service code: SAC 9963 (commonly 996331 for restaurants, cafes, takeaway, room service, and delivery).

If you also sell packaged goods (for example bottled water or branded beverages), those goods should be billed with their own HSN codes and item-level GST rates.

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SAC 996331: Restaurants, cafes, takeaway, room service, home delivery -> usually 5%. SAC 996332: Outdoor catering (events, weddings, corporate) -> usually 18%. SAC 996333: Restaurant service inside qualifying high-tariff hotels -> usually 18%. SAC 996334: Institutional canteen contexts -> can vary by notified treatment, including exempt cases.

Always validate latest notifications and your exact business model with your CA.

5% GST (without ITC): Applies to most standalone restaurants, cafes, cloud kitchens, QSRs, takeaway and direct delivery operations.

18% GST (with ITC): Commonly applicable for outdoor catering and specific hotel-linked scenarios where notified room-tariff conditions are met.

Exempt or outside regular collection in limited cases: Certain institutional or community meal contexts and businesses below registration threshold where registration is not required.

Operationally, you should configure rate logic by order context, not one flat assumption for every bill.

Marketplace and direct orders should not be treated as one tax bucket in reporting.

For aggregator flows, platform-side GST collection/deposit rules apply as per current law. For direct orders, your restaurant usually collects and reports GST directly.

If your software does not separate order source (dine-in, takeaway, direct online, aggregator), filing errors and double-counting risk increase significantly.

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Eligible businesses under turnover limits may choose composition to simplify compliance.

Practical trade-offs: - Simpler periodic filing and records. - No standard ITC benefit. - Billing and tax treatment constraints compared with regular scheme.

This can work well for smaller outlets, but selection should be made only after CA-led eligibility and impact review.

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Step 1: Add GSTIN once in billing settings and print it on every invoice.

Step 2: Set default service code to SAC 996331 for core restaurant menu items.

Step 3: Configure CGST and SGST correctly for applicable slabs (for example 2.5% + 2.5% where 5% applies).

Step 4: Enable item-level tax mapping for mixed bills (prepared food, packaged water, cold drinks, ice cream, and other goods can have different rates).

Step 5: Ensure invoice format includes business details, GSTIN, item code/classification, taxable value, separate CGST/SGST columns, total, and sequential invoice number.

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Prepared food service: usually under SAC 996331. Packaged drinking water: often taxed differently from prepared food. Cold drinks/aerated beverages: typically higher GST slabs than prepared food. Ice cream/chocolates/pre-packaged branded goods: item-level treatment may differ from restaurant service rate.

A single blanket GST percentage across the full bill is a common compliance mistake when mixed items are present.

1) Charging 18% in normal standalone scenarios where 5% commonly applies. 2) Not separating aggregator and direct order tax reporting. 3) Billing packaged items at restaurant service rate. 4) Showing one merged GST line instead of separate CGST/SGST where required. 5) Using wrong HSN/SAC mapping in item or invoice setup.

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Filing cadence depends on registration type and selected scheme. Keep outward sales, tax liability, and composition reporting separated in your monthly or quarterly process.

Practical operations checklist: - Reconcile order-source-wise sales weekly. - Close month-end with CGST/SGST summary exports. - Share standardized reports with your CA before due dates. - Track late fee and interest exposure if return submission is delayed.

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QRCrave billing supports GSTIN-backed invoicing, automatic CGST/SGST split, item-level HSN/SAC mapping, mixed-rate bill handling, and exportable tax-ready summaries.

It also supports cleaner order-type separation (dine-in, takeaway, direct online, aggregator), helping reduce filing errors caused by mixed operational channels.

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Starter (Rs 199/mo): Basic billing only. Growth (Rs 1,299/mo): GST configuration, per-item HSN/SAC, advanced tax-ready reports. Pro (Rs 1,999/mo): Everything in Growth plus multi-location scale.

For teams that need compliant GST setup and operational reporting, Growth and Pro are typically the right fit.

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Q1: What code is generally used for restaurant service billing? A: SAC 9963 family, commonly 996331 for core restaurant services.

Q2: What is the typical standalone restaurant GST rate? A: Usually 5% (2.5% CGST + 2.5% SGST) without ITC in standard standalone scenarios.

Q3: When is 18% seen? A: Commonly in outdoor catering and specified hotel-linked conditions.

Q4: Who handles GST on many aggregator orders? A: Platform-side handling applies as per current rules; software should keep such orders separated in reporting.

Q5: Can small restaurants opt for composition? A: Eligible businesses may opt in, with simpler compliance but important trade-offs (especially ITC and billing constraints).

Q6: Can a small restaurant avoid GST registration? A: Threshold and channel rules apply. Registration treatment can differ if certain marketplace channels are used.

Q7: Does QRCrave billing support GST workflows? A: Yes. GSTIN invoicing, CGST/SGST split, item-level code mapping, mixed-rate handling, and report exports are supported.

Q8: What happens if the wrong GST rate is charged? A: Both overcharge and undercharge can create liability, reconciliation issues, and notice risk.

Q9: Is service charge the same as GST? A: No. Service charge and GST are different and should not be treated as the same line item conceptually.

Q10: How often do restaurants file GST returns? A: Filing cadence depends on scheme and registration type; maintain a strict monthly or quarterly compliance calendar with your CA.

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Top 10 Restaurant Billing Software in India 2026. Zomato Commission for Restaurants 2026: How Much Do They Charge? Best Cafe Billing Software in India 2026.

These topics help operators connect billing compliance with direct-order profitability and software selection decisions.

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Use these internal guides to go deeper into billing, menu setup, and direct ordering.

• Restaurant Billing Software
• Digital Menu
• QR Ordering System
• Online Food Ordering

This guide is published by QRCrave, a QR-based restaurant ordering and billing platform by Apaxion Technologies, Noida, India.

For support and policy references, use the About Us, Support, and Privacy Policy pages on qrcrave.com.

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